While the move is set to impact flyers for the next few days, a slight jolt would be felt by the two airline companies who are expected to encounter losses after the move.

New Delhi: More than 100 flights have been cancelled over the past few days since aviation regulator DGCA grounded eight IndiGo and three GoAir A320neo aircraft citing technical snags. While the move is set to impact flyers for the next few days, a slight jolt would be felt by the two airline companies who are expected to encounter losses after the move. Unless both the companies reshuffle their daily schedules, more flight would be cancelled, confirmed the officials in the loop. At least 50 flights were cancelled today, signaling more disruptions in days to come.

Quoting a senior airline official, Business Standard reported that the grounding was taking a toll as the concerned aviation companies do not have the scope to alter their network. The official explained that the current schedule includes several of the grounded flights, adding that cancellations will continue till March 25.

“We have a large network and multiple flights from one point to another, so we can accommodate the passengers in other planes. Necessary information is being shared with affected flyers,” a senior IndiGo official told the publication.

Pratt and Whitney (PW) - responsible for building the A320neo jets - said the engine problems would be rectified by June. While the losses seem to be minimal for both the airlines, expansion plans (if any) in the upcoming months would be dampened.

Another senior IndiGo official went on to say that the airline has been planning to induct around 40 aircraft over the course of one year, including 25 A320s and 15 ATRs.

Meanwhile, analysts familiar with the airline sector said the IndiGO and GoAir will face the heat of grounding in the next term as there will be a constraint in capacity addition. Experts predict that both the airlines would have to opt for a short-term lease of old aircraft to stay in line with the target of capacity induction. It may be noted that short-term leases are costly and would lead to more expenses.

Ansuman Deb of ICICI Securities said in a research report that the issue could become much bigger (worse) if the engine supplier fails to find a quick fix. While GoAir is a newer player and faces less competition, IndiGo's is expected to take the bigger hit as its dependence on short-term lease of old planes from secondary markets have significantly increased. In FY18, IndiGo has already inducted 24 aircraft from the secondary market, as compared to just 13 new planes.

IndiGo, GoAir stare at finance hit after A320neo aircraft grounding Description:While the move is set to impact flyers for the next few days, a slight jolt would be felt by the two airline companies who are expected to encounter losses after the move. Times Now